JPMorgan sees one more Fed cut in January, depending on upcoming labor data

JPMorgan writes that Fed Chair Powell’s press conference following the FOMC decision mentioned policy being at neutral a “dozen times”, and that while the firm expects one more cut next month, it is also cognizant that this is dependent on upcoming labor market data looking concerning. The added phrase in the FOMC statement regarding “the extent and timing” to the description of potential additional cuts is “notable” in Fedspeak because that was the same phrase added last December, just before the Committee went on an extended pause, the economist tells investors in a research note. Powell did “raise a few eyebrows” in noting that job growth continues to be overstated by around 60,000 per month, implying that recent job growth has perhaps been negative, though the Fed Chair’s prepared remarks also indicated that this move by FOMC “should help stabilize the labor market”, suggesting that they have done “enough for now”, Feroli writes.